Mortgage loan
$
Mortgage term
yrs
Annual interest rate
%
Number of payments
Compounding frequency
Monthly (US & UK)
Results
Biweekly payment
$
Total payment
$
Total interest
$

Biweekly mortgage calculator is a tool that helps you calculate your mortgage payments on a biweekly basis. That means every two weeks. The calculator is a simple version of our mortgage calculator, which deals with all the questions arising when you are about to buy a house with a mortgage loan.

This article provides all the information you need to know about how to calculate biweekly mortgage payments and the compounding frequency involved. Perhaps you are wondering:

  • How does making biweekly mortgage payments work?
  • Is it worth paying mortgage biweekly?

You will find answers to these questions after reading this article.

If you are interested in comparing different repayment scenarios, you can use the mortgage amortization calculator which focuses on the amortization schedule of your mortgage.

What is a biweekly mortgage?

When you collect a mortgage loan, your mortgage provider provides the mortgage interest rate and mortgage term or amortization period. You can choose to pay off the loan using different payment frequencies options. The payment frequency determines the number of payments you make per year to pay off the loan at the end of the mortgage term. However, the more frequent you pay, the less interest will accrue, and you can save money on the payments.

Generally, you make mortgage payments on a monthly basis. It means that you make a single payment by each month's due date, resulting in 12 payments per year.

A semi-monthly payment frequency would allow you to make 24 payments per year.

But the biweekly payment frequency lets you make a payment every two weeks. Since there are 52 weeks in the year, your total number of payments when paying bi-weekly is 26 payments per year. That way, you can make more payments than a monthly schedule and pay off your mortgage loan faster with a full extra contribution to your mortgage repayment each year, equivalent to 13 monthly payments. This additional monthly payment is what makes having a biweekly mortgage worthwhile.

Compounding frequency impact on biweekly mortgage payments

Different countries use different compounding frequency or compound period for mortgage interest. In a mortgage loan, the compounding frequency is the number of times that unpaid mortgage interest is added to the principal amount of the loan. Compounding frequency can be monthly, quarterly, semi-annually or annually.

The compounding frequency determines the interest rate per payment. For instance, interest is compounded semi-annually in Canada but compounded monthly in the US and UK. Our mortgage payoff calculator can quickly compare different compounding frequencies.

How to calculate biweekly mortgage payments

For example; To calculate the biweekly mortgage payment of a $150,000 mortgage loan with an interest rate of 6% for 30 years.

  • Determine the number of payments

The number of payments expected:

number of payments = mortgage term * (number of weeks in a year / 2)

= mortgage term * (52 / 2)
= 30 * 26
= 780
  • Calculate the mortgage interest rate per payment

Here, the compounding frequency dictates the interest rate per payment:

interest rate per payment (IRPP) = (1 + annual interest rate/compounding frequency) ^ (compounding frquency/26) - 1

  • Semi-annually, e.g., as used in Canada:

    IRPP = (1 + 6/2)(2/26) – 1

    = 0.2276%

  • Monthly, e.g., as used in US and UK:

    IRPP = (1 + 6/12)(12/26) – 1

    = 0.2305%

Next,

  • Calculate the biweekly mortgage payment using the interest rate per payment

The biweekly mortgage payment can be calculated using the formula:

biweekly payments = mortgage loan * [IRPP * (1 + IRPP)number of payments/(1 + IRPP)number of payments - 1]

  • For the semi-annually compounding frequency:

= 150000 * [0.2276 * (1 + 0.2276)780 / (1 + 0.2276)780 - 1]

= $411.25

  • For the monthly compounding frequency:

= 150000 * [0.2305 * (1 + 0.2305)780 / (1 + 0.2305)780 - 1]

= $414.52

In conclusion, the biweekly payment for a mortgage of $150,000 is $411.25 for a semi-annual compounding frequency; and $414.52 for a monthly compounding frequency.

Payment Total payment Total interest
Monthly $899.33 $323,757.28 $173,757.28
Biweekly $414.52 $323,322.57 $173,322.57
Savings $434.71

Whether your jurisdiction uses a semi-annual compounding frequency or a monthly compounding frequency, you save more using a biweekly payment schedule than paying monthly, as seen in the comparison table.

You can use our well-equipped mortgage calculator (linked above) to calculate your mortgage payments on a monthly, biweekly, or weekly schedule. It also allows you to calculate accelerated payments for your loans.

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